Present House market in GTA area is incredibly insane...
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Posted on: 15-03-17 12:20:30
Compare same house (apple to apple) than feels prices are ridiculously high...
Comparison: Smaller lot house 38 ft lot sold by Mattamy (Oakville) as below:
Snowberry model in January 2016 at 940k
Snow berry model in Spring 2016 at $1.08m
Snowberry model in 2nd February 2017 at $1.426m
Snowberry model in 10th February 2017 at $1.56m
So basically within one year same house price increased by $620,000...
Mattemy released total 90 + 106 + 24 = 220 house in last one month and surprisingly all sold out within 3 weeks with crazy prices.
Mattamy Homes JUST released new house in Oakville - Preserve - 45 feet lot starting price $1.689M - 2950 sq ft house only....
http://mattamyhomes.com/gta/communities/oakville-the-preserve.aspx
Two weeks ago, I was there at Sales centre on Saturday to just see what's going on and found more than 300 people was in line up to buy the house and house available for sale was only 75 units....
it is purely, demand is very high and supply of new houses is very low....
Quote:
Originally posted by hchheda
Quote:
Originally posted by Agent Raj
Market is indeed seller based due to many factors. There just aren't enough new homes being built to accommodate first time buyers or current owners looking to move into a newer home.
The latest BILD report highlighted how there were over 12,000 NEW detached builder homes to choose from a decade ago (2007) vs only 534 in 2016. Builders continue to point the finger at ever increasing development costs, bureaucratic red tap, and spiraling labour costs.
While the supply is ever-shrinking, the demand in ever-increasing due to regular increase in population, existing migrants, new 1st generation of Canadians, and new migrants. Many new migrants seem to be better of financially when arriving here or/and get well paying jobs here. This is enabling them to purchase a home a lot quicker than past migrants, therefore increasing the home buyer base.
All this is further exacerbated by real estate investors (flips, short/long term rentals, or new development) who seem to have been more active in the past decade than ever before.
While Ontario government has hinted at possible tax similar to B.C., that really hasn't helped B.C either. While the overall home sale have dropped in B.C., there is still a huge shortage of homes with prices still rocketing upwards.
Perhaps a combination of new tax, higher interest rates, and tougher mortgage approval rules would work but then would the government really want to disrupt the economy where housing is creating tons of jobs and plenty of tax for the government.
With the market being so difficult to predict, the perfect time to get into a house is NOW, whenever that may be.
Thank you for circulating the OREA and TREB spiel about more building permits. Can you explain how new house construction is going to douse the overheated housing market? As it is the new homes being built are already above current market rates...More housing permits will only bring in extra profits for the builders/developers. Nothing is going to ease the actual consumers pain unless the cartel of builders, developers, RE agents and mortgage agents is breached.
Hiren
Hiren,
The facts I stated above were by found by a BILD study/report and reported/covered by almost all newspapers, nothing to do with any other real estate body, as you stated above.
Number of permits issued along with builder plans are available for your local city hall. One can do bit of research and legwork to verify builder claims but I guess it's much easier to dismiss others views using pessimistic "spiel" glasses.
Builder prices are high since they have very few homes available and can ask for whatever they decide. They are "for-profit" businesses and individuals in a capitalist based economy.
If there were 12000 new homes (as in 2007) to choose from vs 534, there would not be bidding wars (or at least not that often) and builders woudl price the homes more conservatively. And that 12,000 was only detached. Imagine similar supply of semi or town-homes being available as well.
12000 new homes would also result in more homes being available in lower priced resale house market since some of those folks would be "moving up" into newer or larger home. That would directly benefit first time home buyers.
I merely stated builder's claims that ever increasing development costs, bureaucratic red tap, and spiraling labour costs is hampering their ability to build more new homes. Every individual can choose to read into that builder claim as we wish.
The fact is shortage of homes will keep driving the prices high until either a lot more new homes/resale inventory is available or mortgage rates rise significantly.
I for one do not grudge anyone in trying to buy into one of these properties that are being offered for sale. A few people have the money to pay for it all. A few are employed and are switching into some thing newer and bigger and are qualifying for it. So, go for it guys.
The money is made available to those who can afford, and the banks will welcome them with red carpets. They are also tightening the screws to curb speculations and new entrants from outside the country with tonnes of money to spare and many more are popping in each and everyday. All of these are factors that we know are for those who has to live by them and also make efficient use of them. And for the rich and also to the get rich quick BUILDERS, it has become a normal behaviour and they do not care if they do not sell one of their homes. They will wait till the next one who will drop in and fall in love with it and write a cheque. They have worked with all of the sceneries and adjusted their prices accordingly.
They are not hungry anymore. I can READ their arrogance from the prices and in their ADs. One thing that I appreciate too is the quality of their product. It is immaculate.
Let us face it guys.. It is a BUYER's Market. Let them enjoy it.
Hang in there.
FH.
I bough mine and paid for it counting pennies. See what they did to the pennies.
You wouldn't know the 'one' from the 'other' anyway. fh.
On B.C.’s farmland, mega-mansions and speculators reap the rewards of lucrative tax breaks.
This news is 70 days old. But the venue has changed a long time before that. Look where they are headed into in B.C. and see the sizes of those behemoths. Makes one want to move into Canada, doesn't it!
Is it just clay and mud? Or is it muscle and blood!! It takes a lotsamula to build one such Buckingham.
FH.
http://www.theglobeandmail.com/news/investigations/farmland-and-real-estate-in-british-columbia/article32923810/
